Point Arena voters will head to the polls for the Nov. 5 election to decide on Measure X, which would sizably increase a sales tax to fund city services such as public safety, Arena Cove pier operations and general government operations.
Measure X would add a seven-eighths-cent tax on top of the city’s current half-cent sales tax. If the measure is passed, the total combination of state and local sales taxes would be 9.25%, or 9.25 cents per dollar. Point Arena’s city attorney estimated the new sales tax would generate $85,000 to $90,000 annually for the city’s general fund.
In the ballot argument in favor of Measure X, signed by Point Arena’s five City Council members, they stated that the city “can barely afford to maintain basic services like local street repaving or pothole repair, trash and litter pick-up, park maintenance and pier operations.”
The city’s funding hasn’t been able to keep up with inflation, and a drop in sales from local businesses has put a dent in revenue coming into the general fund.
“Sales tax generated $50,000 last fiscal year, dropping 37% from $79,000 in fiscal year 2021-2022,” the councilmembers wrote in the ballot argument.
The councilmembers also warned that “city finances have hit a major pothole that threatens our independence as an incorporated city.”
Measure X taxes would remain in effect until repealed by voters and revenues would be audited as part of the city’s annual audit of the general fund and documented in the city’s annual financial report. No ballot argument was submitted against the measure.
Although Measure X funds are meant to support the Point Arena community, some shop owners are concerned that the tax increase could impact already dwindling local sales.
“Any increase in taxes could affect small businesses in our community,” said Jacqueline Strock, owner of Roots Herbal Apothecary, a boutique that sells bulk herbs, teas and homeopathic remedies in downtown Point Arena.
She added that the decline in the cannabis industry has already harmed several businesses in the coastal community.
“Cannabis going legal has changed the economy,” Strock said, adding that Point Arena, like many small towns in the county, has seen a drop in revenue as money spent locally by trimmers and cannabis tourists has declined.
The city councilmembers emphasized that Measure X is a crucial component in continuing to provide basic services to the city.
“The revenue will be used for basic city services as well as to build a financial reserve to weather lean years and stabilize our organization,” the argument stated. “Something must be done to keep our city financially healthy.”